We have discussed
Tips and Tricks in last few issues. Let us examine the dark side
of Internet scams in this issue.

What happens if someone offers you US Dollar 5 million
free ? All you need to do is to forward your bank details to a civil
servant or descendant of a presidential/royal family so that a huge
unaccounted sum lying in govt exchequer / bank vault can be deposited
in your bank account. You get a cut of 5 million dollars just for
allowing these guys to make use of your bank account.

It sounds crazy and perhaps 99% people, when presented
with the offer, will laugh away or remark �hey ! one more trickster�.
However, there is 1% who doesn�t think so. So, watch out !

What is Nigerian Scam ?

A Five Billion US$ (as of 1996, much more now) worldwide
Scam which has run since the early 1980's under successive governments
of Nigeria. It is also referred to as "Advance Fee Fraud", "419
Fraud" (Four-One-Nine) after the relevant section of the Criminal
Code of Nigeria, and "The Nigerian Connection" (mostly in Europe).
However, it is usually called plain old "419" even by the Nigerians
themselves. The Nigerian Scam is, according to published reports,
the third to fifth largest industry in Nigeria.

How Does the Scam Operate ?

The beginning of the scam is an e-mail, fax or letter.
The target receives an unsolicited fax, email, or letter from Nigeria
containing either a money laundering or other illegal proposal OR
may receive a legal and legitimate business proposal by normal means.
Common variations of the scam include "over invoiced" or "double
invoiced" oil or other supply and service contracts where the Nigerian
operators want to get the overage out of Nigeria; crude oil and
other commodity deals; a "bequest" left in a will etc ..the variations
are very creative and virtually endless. You will be asked to forward
your bank details and office stationery to the contact in Nigeria
for preparing the legal documents for money transfer.

Sweeten the Deal... Slowly

Once the gullible falls for the story, correspondence
starts and an impression is created that everything is in order
and the target is about to pocket his lifetime deal. The goal of
the scam artist is to delude the victim into thinking that he or
she has been singled out to participate in a very lucrative although
questionable -- arrangement. The intended victim is reassured of
the authenticity of the arrangement by forged or false documents
bearing apparently official Nigerian government letterhead, seals,
as well as false letters of credit, payment schedules and bank drafts.
The scam artist may even establish the credibility of his contacts,
and thereby his influence, by arranging a meeting between the victim
and "government officials" in real or fake government offices.

The Screw Tightens !

Then suddenly the victim is asked to pay up front
an Advance Fee of some sort, be it an "Advance Fee", "Transfer Tax",
"Performance Bond", or to extend credit, grant COD privileges, whatever.
If the victim pays the Fee, there are many "Complications" which
require still more advance payments until the victim either quits,
runs out of money, or both. If the victim extends credit etc. he
may also pay such fees ("nerfund" etc.), and then he is stiffed
with NO Effective Recourse.

Finance risk extends to Life Risk

If it goes still further and they get you over to
Nigeria (or wherever), you are in serious danger that may even be
fatal. Many Americans and Europeans are said to have �disappeared�
once in Nigeria. Victims are almost always requested to travel to
Nigeria or a border country to complete a transaction. Victims are
often told that a visa will not be necessary to enter the country.
The Nigerian scam artists may then bribe airport officials to pass
the victims through Immigration and Customs. Because it is a serious
offense in Nigeria to enter without a valid visa, the victim's illegal
entry may be used by the scam artists as leverage to coerce the
victims into releasing funds. Violence and threats of physical harm
may be employed to further pressure victims. In June of 1995, an
American was murdered in Lagos, Nigeria, while pursuing a 4-1-9
scam, and numerous other foreign nationals have been reported as
missing.

Conclusion

Avoid these scams like the plague! Don't let promises
of large amounts impair your judgment. If you are already a victim
or looking for legal remedies, check the websites listed below.
It contains information on whom to contact for reporting the scam
and lots more.

More Information

Nigeria - The 419 Coalition - dedicated to exposing
a worldwide scam which has run for the last ten years under successive
governments of Nigeria. http://home.rica.net/alphae/419coal/

Author :Dr. Amit K. Chatterjee
(Amit worked in blue-chip Indian and MNCs for 15 years in various
capacities like Research and Information Analysis, Market Development,
MIS, R&D Information Systems etc. before starting his e-commerce
venture in 1997. The views expressed in this columns are of
his own. He may be reached at amit@infobanc.com
)

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